Location: Mortgage and Financing

Discussion: Mortgage Scams.Reported This is a featured thread

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wifihead
Mortgage Scams.
Apr 29 2008, 4:22 AM EDT | Post edited: Apr 29 2008, 4:22 AM EDT
The economy is bad and the scam artists are wreaking havoc on unsuspecting sometimes desperate homeowners and first time buyers. Mortgage scams are increasing daily and the targets are typically clients with bad credit, those who are over extended, or are in need of financial relief. Federal mortgage fraud convictions have more than doubled in the past year, and the FBI expects a growth in these scams as the crisis over substandard, high-interest home loans escalates. The suspicious activity reported involves deceptive pricing and falsified documentation by mortgage brokers, lenders, appraisers, real estate firms and others. Borrowers that are facing foreclosure and bankruptcy are susceptible because of the eagerness to keep their home, making them prime targets for predatory foreclosure scams.
A most common scam is equity skimming which results in the borrower losing their home and much of their cash. The perpetrator will convince the borrower to sign over the house's deed being led to believe that things will be straightened out. In a later post I will attempt to break down these scams. Do you find this valuable?    

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